Silver prices are up over 35% this year and could continue climbing. Global demand can further prop up prices and in the case of Russia, could add to the metal’s upside.
The Jerusalem Post noted that Russia could be changing its precious metals strategy, which could benefit silver due to increased demand. Silver could become a significant asset for the county’s wealth fund.
“According to a report released by Interfax this week and cited by Bloomberg, Russia’s Draft Federal Budget outlines plans to significantly bolster its holdings in precious metals over the coming years,” the report said. “Notably, the budget includes plans to acquire gold, platinum, palladium, and, for the first time, silver.”
As mentioned, silver’s gains could be a byproduct of gold’s rise this year. Gold itself is up close to 30%, but silver is also benefiting from its industrial usage as a key component in clean energy technology. That said, more countries like Russia are taking notice.
“The inclusion of silver in the State Fund’s acquisition strategy marks a departure from recent trends,” the report added. “While central banks around the globe, particularly Russia, have set records in gold purchases following international sanctions, silver has largely remained off their radar. This latest development suggests that silver’s role in Russia’s financial strategy may be evolving.”
If silver prices continue to exhibit upside, investors will want to obtain exposure. One easy way is via the Sprott Physical Silver Trust (PSLV). The fund provides exposure to the precious metal without the additional hassle of storing it. It invests in unencumbered and fully allocated London good delivery silver bars. Additionally, shareholders can redeem their shares for physical bullion anywhere in the world (subject to certain minimum conditions) if they want a more tangible investment experience.
Combine Silver and Gold Exposure
As mentioned, gold has had a serendipitous rise higher this year alongside silver. Investors may want to add gold as a store of value and safe haven asset along with silver’s duality as a precious metal while also serving as an industrial metal. To that end, investors don’t have to maintain separate positions in both. They can look to funds that combine exposure like the Sprott Physical Gold and Silver Trust (CEF).
PSLV is a closed-end trust that invests in unencumbered and fully allocated physical gold and silver bullion in LGD bar form. Overall, the goal of CEF is to provide a secure, convenient, and exchange traded investment alternative for investors who want to hold physical gold and silver without the inconvenience typical of a direct investment in physical bullion. Investing in shares of the fund also allows for higher liquidity as opposed to selling physical bullion at a local exchange.
For more news, information, and analysis, visit the Gold/Silver/Critical Minerals Channel.
